Question 6:
If a seller gives a discount of 15% on retail price, she still makes a profit of 2%. Which of the following ensures that she makes a profit of 20%?
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If a seller gives a discount of 15% on retail price, she still makes a profit of 2%. Which of the following ensures that she makes a profit of 20%?
- Give a discount of 5% on retail price.
- Give a discount of 2% on retail price.
- Increase the retail price by 2%.
- Sell at retail price.
Option: 4
Explanation:
Explanation:
Let the retail price be M and cost price be C.
Given,
0.85 M = 1.02 C
M = 1.2 C
If he wants 20% profit he has to sell at 1.2C, which is nothing but the retail price.
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